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WHEN THE DEAL ALMOST FELL APART
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THE FIRST SETBACK
Approximately two weeks after the offer was accepted, the lender’s appraisal came in roughly $15,000 below the agreed purchase price.
Steve believed the market supported the contract price. The buyer’s agent, who also worked extensively in Olympia, agreed.
The seller was unwilling to reduce the price based on the appraisal.
Rather than immediately concede value, Steve looked at the financing structure.
The buyer originally planned to put 20% down. Drawing on his mortgage experience, Steve proposed restructuring the financing around an approximately 15% down payment with mortgage insurance, allowing the buyer to redirect part of the cash toward the appraisal gap.
The revised approach preserved the agreed purchase price and kept the transaction moving.
THE SECOND SETBACK
With the sellers already relocated and the home empty, the original lender denied the buyer’s financing only three days before closing.
Steve pressed for a clearer explanation and learned that the issue involved an additional lender restriction following a new credit-card application.
With the cooperation of the buyer’s real estate agent, Steve met with the buyer the following morning to explore replacement financing.
Steve remained the seller’s listing agent. The buyer retained their own real estate agent while working with Steve on the replacement financing.
THE SOLUTION
The replacement financing required another independent appraisal, which the buyer agreed to expedite.
This time, the appraisal came back $19,000 above the purchase price.
With the stronger valuation and new financing arrangement, the buyer was able to return to the original plan of putting 20% down.
The seller’s agreed price remained intact.
The transaction closed one week later.
See how Tolliver Prince experience has helped clients navigate valuation, financing, negotiation, and other transaction challenges.
WHEN EXPERIENCE MATTERS
When valuation, financing, or an unexpected last-minute issue puts a transaction at risk, Tolliver Prince Realty brings experience from multiple sides of the deal to help identify a path forward.
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